e-commerce

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e-commerce

  1. 1. EMTM 553 Electronic Commerce Systems Md. Kaiser
  2. 2. Electronic Commerce (E-Commerce) <ul><li>Commerce refers to all the activities the purchase and sales of goods or services. </li></ul><ul><ul><li>Marketing, sales, payment, fulfillment, customer service </li></ul></ul><ul><li>Electronic commerce is doing commerce with the use of computers, networks and commerce-enabled software (more than just online shopping) </li></ul>
  3. 3. Brief History <ul><li>1970s: Electronic Funds Transfer (EFT) </li></ul><ul><ul><li>Used by the banking industry to exchange account information over secured networks </li></ul></ul><ul><li>Late 1970s and early 1980s: Electronic Data Interchange (EDI) for e-commerce within companies </li></ul><ul><ul><li>Used by businesses to transmit data from one business to another </li></ul></ul><ul><li>1990s: the World Wide Web on the Internet provides easy-to-use technology for information publishing and dissemination </li></ul><ul><ul><li>Cheaper to do business (economies of scale) </li></ul></ul><ul><ul><li>Enable diverse business activities (economies of scope) </li></ul></ul>
  4. 4. E-commerce applications <ul><li>Supply chain management </li></ul><ul><li>Video on demand </li></ul><ul><li>Remote banking </li></ul><ul><li>Procurement and purchasing </li></ul><ul><li>Online marketing and advertisement </li></ul><ul><li>Home shopping </li></ul><ul><li>Auctions </li></ul>
  5. 5. Ecommerce infrastructure <ul><li>Information superhighway infrastructure </li></ul><ul><ul><li>Internet, LAN, WAN, routers, etc. </li></ul></ul><ul><ul><li>telecom, cable TV, wireless, etc. </li></ul></ul><ul><li>Messaging and information distribution infrastructure </li></ul><ul><ul><li>HTML, XML, e-mail, HTTP, etc. </li></ul></ul><ul><li>Common business infrastructure </li></ul><ul><ul><li>Security, authentication, electronic payment, directories, catalogs, etc. </li></ul></ul>
  6. 6. The Main Elements of E-commerce <ul><li>Consumer shopping on the Web, called B2C (business to consumer) </li></ul><ul><li>Transactions conducted between businesses on the Web, call B2B (business to business) </li></ul><ul><li>Transactions and business processes that support selling and purchasing activities on the Web </li></ul><ul><ul><li>Supplier, inventory, distribution, payment management </li></ul></ul><ul><ul><li>Financial management, purchasing products and information </li></ul></ul>
  7. 7. Advantages of Electronic Commerce <ul><li>Increased sales </li></ul><ul><ul><li>Reach narrow market segments in geographically dispersed locations </li></ul></ul><ul><ul><li>Create virtual communities </li></ul></ul><ul><li>Decreased costs </li></ul><ul><ul><li>Handling of sales inquiries </li></ul></ul><ul><ul><li>Providing price quotes </li></ul></ul><ul><ul><li>Determining product availability </li></ul></ul><ul><li>Being in the space </li></ul>
  8. 8. Disadvantages of Electronic Commerce <ul><li>Loss of ability to inspect products from remote locations </li></ul><ul><li>Rapid developing pace of underlying technologies </li></ul><ul><li>Difficult to calculate return on investment </li></ul><ul><li>Cultural and legal impediments </li></ul>
  9. 9. The process of e-commerce <ul><li>Attract customers </li></ul><ul><ul><li>Advertising, marketing </li></ul></ul><ul><li>Interact with customers </li></ul><ul><ul><li>Catalog, negotiation </li></ul></ul><ul><li>Handle and manage orders </li></ul><ul><ul><li>Order capture </li></ul></ul><ul><ul><li>Payment </li></ul></ul><ul><ul><li>Transaction </li></ul></ul><ul><ul><li>Fulfillment (physical good, service good, digital good) </li></ul></ul><ul><li>React to customer inquiries </li></ul><ul><ul><li>Customer service </li></ul></ul><ul><ul><li>Order tracking </li></ul></ul>
  10. 10. Web-based E-commerce Architecture Client Tier 1 Web Server Tier 3 Tier 2 Tier N Application Server Database Server DMS
  11. 11. E-commerce Technologies <ul><li>Internet </li></ul><ul><li>Mobile technologies </li></ul><ul><li>Web architecture </li></ul><ul><li>Component programming </li></ul><ul><li>Data exchange </li></ul><ul><li>Multimedia </li></ul><ul><li>Search engines </li></ul><ul><li>Data mining </li></ul><ul><li>Intelligent agents </li></ul><ul><li>Access security </li></ul><ul><li>Cryptographic security </li></ul><ul><li>Watermarking </li></ul><ul><li>Payment systems </li></ul>
  12. 12. Infrastructure for E-commerce <ul><li>The Internet </li></ul><ul><ul><li>system of interconnected networks that spans the globe </li></ul></ul><ul><ul><li>routers, TCP/IP, firewalls, network infrastructure, network protocols </li></ul></ul><ul><li>The World Wide Web (WWW) </li></ul><ul><ul><li>part of the Internet and allows users to share information with an easy-to-use interface </li></ul></ul><ul><ul><li>Web browsers, web servers, HTTP, HTML </li></ul></ul><ul><li>Web architecture </li></ul><ul><ul><li>Client/server model </li></ul></ul><ul><ul><li>N-tier architecture; e.g., web servers, application servers, database servers, scalability </li></ul></ul>
  13. 13. E-Commerce Software <ul><li>Content Transport </li></ul><ul><ul><li>pull, push, web-caching, MIME </li></ul></ul><ul><li>Server Components </li></ul><ul><ul><li>CGI, server-side scripting </li></ul></ul><ul><li>Programming Clients </li></ul><ul><li>Sessions and Cookies </li></ul><ul><li>Object Technology </li></ul><ul><ul><li>CORBA, COM, Java Beans/RMI </li></ul></ul><ul><li>Technology of Fulfillment of Digital Goods </li></ul><ul><ul><li>Secure and fail-safe delivery, rights management </li></ul></ul>
  14. 14. System Design Issues <ul><li>Good architectural properties </li></ul><ul><ul><li>Functional separation </li></ul></ul><ul><ul><li>Performance (load balancing, web caching) </li></ul></ul><ul><ul><li>Secure </li></ul></ul><ul><ul><li>Reliable </li></ul></ul><ul><ul><li>Available </li></ul></ul><ul><ul><li>Scalable </li></ul></ul>
  15. 15. Creating and Managing Content <ul><li>What the customer see </li></ul><ul><li>Static vs. dynamic content </li></ul><ul><li>Different faces for different users </li></ul><ul><li>Tools for creating content </li></ul><ul><li>Multimedia presentation </li></ul><ul><li>Integration with other media </li></ul><ul><li>Data interchange </li></ul><ul><li>HTML, XML (Extensible Markup Language) </li></ul>
  16. 16. Cryptography <ul><li>Keeping secrets </li></ul><ul><ul><li>Privacy: interceptor cannot use information </li></ul></ul><ul><ul><li>Authentication: sender’s identity cannot be forged </li></ul></ul><ul><ul><li>Integrity: data cannot be altered </li></ul></ul><ul><ul><li>Non-repudiation: sender cannot deny sending </li></ul></ul><ul><li>How to evaluate cryptography </li></ul><ul><li>Secret key (symmetric) cryptography; e.g., DES </li></ul><ul><li>Public key (asymmetric) cryptosystems; e.g, RSA </li></ul><ul><li>Digital signatures, digital certificates </li></ul><ul><li>Key management; e.g., PKI </li></ul>
  17. 17. Security <ul><li>Concerns about security </li></ul><ul><li>Client security issues </li></ul><ul><li>Server security issues </li></ul><ul><li>Security policy, risk assessment </li></ul><ul><li>Authentication methods </li></ul><ul><ul><li>Something you know: passwords </li></ul></ul><ul><ul><li>Something you have: smart card </li></ul></ul><ul><ul><li>Something you are: biometrics </li></ul></ul><ul><li>Firewalls, proxy servers, intrusion detection </li></ul><ul><li>Denial of service (DOS) attacks, viruses, worms </li></ul>
  18. 18. Payment Systems <ul><li>Role of payment </li></ul><ul><li>Cash </li></ul><ul><ul><li>properties: wide accept, convenient, anonymity, untraceability, no buyer transaction cost </li></ul></ul><ul><li>Online credit card payment, Smart Cards </li></ul><ul><ul><li>Secure protocols: SSL, SET </li></ul></ul><ul><li>Internet payment systems </li></ul><ul><ul><li>Electronic cash, digital wallets </li></ul></ul><ul><li>Micro-payments </li></ul><ul><li>Wireless devices </li></ul>
  19. 19. Transactions Processing <ul><li>Transactions and e-commerce </li></ul><ul><li>Overview of transaction processing </li></ul><ul><li>Transaction processing in e-commerce </li></ul><ul><li>Keeping business records, audit, backup </li></ul><ul><li>High-availability systems </li></ul><ul><li>Replication and scaling </li></ul><ul><li>Implementation </li></ul>
  20. 20. Other System Components <ul><li>Taxes </li></ul><ul><li>Shipping and handling </li></ul><ul><li>Search engines </li></ul><ul><li>Data mining </li></ul><ul><li>Intelligent agents </li></ul><ul><li>Inventory management, enterprise resource planning (ERP) </li></ul><ul><li>Customer relation management (CRM) </li></ul>
  21. 21. Course Outline <ul><li>Overview of e-commerce </li></ul><ul><li>The Internet and the WWW </li></ul><ul><li>E-commerce software building blocks and tools </li></ul><ul><li>Scalability, high-performance servers, web caching </li></ul><ul><li>Basic cryptography </li></ul><ul><li>Security, watermarking, firewalls </li></ul><ul><li>Payment systems </li></ul><ul><li>Current and future directions </li></ul>

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